CYPHER/CAT A
PRIORITY BRUSSELS
TELEGRAM NUMBER 18
CONFIDENTIAL ZNEUTRAL,
FROM DODGE.
CONFIDENTIAL
+
TO HONG KONG
4 MARCH 1969
TOP CONT
нк
COTTON TEXTILES TO THE BENELUX.
PBipl
VERHAGEN CAME TO SEE ME IN BRUSSELS YESTERDAY AND WE MADE SOME PROGRESS, AT LEAST IN ISCLATING THE PROBLEM AREAS. DUTCH
GOODWILL IS EVIDENT BUT VERHAGEN COULD NOT YET SPEAK PERSONALLY
FOR THE BENELUX AS SUCH. THEIR DECISION-MAKING MACHINERY IS VERY
CUMBERSOME AND INEVITABLY LEADS TO DELAYS.
'GREY FABRICS FOR PROCESSING'
2.
DRAFT DUTCH PROPOSALS FOR A SPECIAL EX-QUOTA SCHEME IS
MEETING WITH SOME BELGIAN RESISTANCE BUT A POSITIVE SUGGESTION
SHOULD EMERGE VERY SOON. I POINTED CUT SOME POTENTIAL SNAGS FROM
OUR POINT OF VIEW IN THE SCHEME AS DRAFTED AND I HOPE THAT THESE
WILL NOW BE ELIMINATED FROM THE FORMAL PROPOSAL BUT THE ADMINISTR-
ATIVE ARRANGEMENTS INVOLVE DOCTRINAL AND PRACTICAL PROBLEMS AND
WE MAY CONCEIVABLY HAVE TO SETTLE FOR A COMPROMISE.
*1967 RESERVES'
3.
VERHAGEN WAS ALMOST READY TO COMMIT HIMSELF AND THE OUTCOME
ON THIS IS LIKELY TO BE PERFECTLY SATISFACTORY. I SOUGHT A ONE-
PHASE RELEASE SHOULD THE 1968 RESERVES CONTINUE TO BE WITHHELD FOR
AN APPRECIABLE TIME.
'1968 RESERVES'
4. THE SIZE OF THE OUTSTANDING DUTCH BALANCES UNDER PRE-13TH
JANUARY IMPORT LICENCES IS VERY ALARMING TO THEM. VERHAGEN SAW
POSSIBLE FURTHER DELAYS AS A RESULT OF THIS BUT UNFORTUNATELY HE
WAS NOT HIMSELF FULLY INFORMED ON ALL THE RELEVANT DETAILS OF THE
LICENSING PROCEDURES SO NO RESOLUTION OF THE BENELUX PROBLEMS, NOR EVEN AN EXACT ASSESSMENT OF THEM, COULD BE REACHED. I PRESSED
OUR CASE FOR THE EARLY RELEASE EVEN AT SOME RISK TO THE BENELUX
AND HE PROMISED FULL AND SYMPATHETIC CONSIDERATION,
RECEIVED IN ARCHIVES No.31
-5 MAR 1969
HICK6/504//
CONFIDENTIAL
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